Wednesday, December 20, 2017

Islamic finance in Europe (124)

Continuation
Nevertheless, the instruments issued by IIFSs (Institutions Offering Islamic Financial Services), that will make up an IIFS’s additional capital.
It would be required to meet the necessary requirements in order to ensure Shari’ah compliance.
This mentioned in IFSB (Islamic Financial Services Board.) Exposure Draft 15.
IFSB is an international standard-setting organisation which promotes and enhances the soundness and stability of the Islamic financial services industry.
It issues global prudential standards and guiding principles for the industry.
IFSB Exposure is Published Standards - Guiding Principles on Disclosure Requirements for Islamic Capital Market Products.
The risks associated with such instruments would therefore be assessed differently than those of conventional instruments.
From the research paper of European Central Bank

(Authors: F.Mauro, P.Caristi, S.Couderc, A.D.Maria, L.Ho, B.K.Grewal, S.Masciantonio, S. Ongena and S.Zaher)

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